Final Exam

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School

Pennsylvania State University *

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Course

301

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Management

Date

Feb 20, 2024

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docx

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4

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1. Happy workers make good workers. Explain in the context of Amtrak 500 words min 5 points The people who are employed at Amtrak are happy to be a part of the company. We know that this is true because of the fact that Amtrak is listed on the ‘America's Best Employers 2022’ list. On Glassdoor it is stated that Amtrak has an overall rating of 3.6 out of 5 based on over 1,109 reviews left anonymously by employees. In addition to this, it mentions that 63% of employees would recommend working at Amtrak to a friend and 50% have a positive outlook on the business overall. All of these statistics show that over half of the people employed by the Amtrak enjoy working there and would also recommend their peers to work there as well, meaning they stand behind the company as a whole. When we look at Amtrak, specifically, it has been noted that, even though their employees are happy, they were not working to the best of their ability. People believe that, when an employee fears unemployment, they actually will work to the best of their ability so in the case of Amtrak, it shows that because their employees are so happy they feel that they do not have to work as hard. it is ironic that when a company treats their employees well, the employees feel that they do not have to work as hard because their spot is already secured. although, it is still in the best interest of a company to keep their employees happy. if the company continues to keep their employees happy, it should have a better turnover rate because people will recommend their peers to work at the company as well and 2. What are the sources of power that Zuckerberg possesses in Meta? How has he been able to maintain power for so long? 500 words min 6 points There are many sources of power that Zuckerberg possesses in Meta. First we have to take a look at his legitimate, reward, coercive, and informational power. The legitimate power that a CEO possesses comes from their title and their position within a company. When we look at Zuckerberg specifically he is both the founder and the CEO of Meta giving him the legitimate power of the company. When we speak of reward power, it is when an individual has the ability to reward people within their company. There are many ways in which they can hand out rewards like incentives, bonuses, gifts, promotions, raises, etc. Zuckerberg uses his reward power by doing things like doubling the stock option for employees that exceptionally pass or meet their goals that are set. On the other hand of being able to reward there is also coercive power. Coercive power is being able to discipline individuals that do not meet their goals. Zuckerberg being the CEO he has the ability to demote, suspend, and even terminate employees when they do not meet the company's standards. Zuckerberg even used coercive power in the instance where he uses his power to ensure that his employees do not leak useful company information, and if they did they could be terminated for it. Lastly, there is informational power which is the ability to have access to useful and powerful information. As well as having access to it, the individual who holds the informational power also has the power to do what they want with the information such as change, control, and even obscure it. Zuckerberg has been able to maintain his power for so long for a multitude of reasons, he manipulated the shares by implementing dual class
shares. Zuckerberg ultimately has the final say on the outcome of the company when there are matters that have been submitted to the company's stockholders for approval. He also filled his management teams with executives and non executives with individuals that approve of and support him. By doing this it ensures that nobody on his team will try to go against him or take his spot in his company. If Zuckerberg fills his team with people that would not go against him then the board will never have an opinion that opposes him even if it is the best thing for the company. Overall, Zuckerberg has been able to hold his power for so long because of his narcissistic ways. Meta has become a monopoly, dominating the social media industry. There would be very few social media platforms left if there are individuals who choose not to use the Metaverse. By creating this monopoly it has been easy for Zuckerberg to maintain his power over Meta because he dominates the industry and nobody wishes to go against him. All that Zuckerberg has to do to maintain his power over Meta is to continue to do exactly what he has been doing, only hire people that agree with him and continue his narcissistic CEO ways. 3. What future challenges may the workers' union at Amazon face, and how could they retaliate against the same? 300 words min 4 points The people at Amazon have formed a union because they demanded that it is their right as a worker that they be treated with dignity and respect. Although they have unionized they still may face challenges that are posed by the company. As a company, Amazon still has the ability to do things to make the lives of the people who unionize harder. They can do union suppression which is a strategy that management would use to avoid unionization. An example of this would be the company threatening to close or relocate the company if a union is formed by the employees. There is another strategy that could be used by management which is union substitution. Union substitution is ultimately a tactic used by management to make the employee be loyal to the company instead of the union. This tactic is when management tries to convince the employees that even if they form a union the company would be unwilling to negotiate their demands and that if they did not form a union the company would be willing to listen to their needs more openly. There is also ideological opposition where the company tries to tell the workers that unionization would ultimately harm the worker. As well as this there is also stonewalling where the company would delay any type of bargaining with the union once the union has already been formed. If the company does this, then it would ultimately her to Union, because there would still be nothing done for them. There is also blatant refusal, which means the company would fail to acknowledge the union formation, or they would not bargain with them. When we look at Amazon, specifically, if Amazon does this, it could harm them as a company because they need workers in order to be successful. 4. Do you think Primark appropriately implemented a low cost strategy? Explain using value chain analysis. 500 words min 5 points
I do not think that Primark appropriately implemented a low cost strategy for many reasons. Overall Primark pays their employees low wages because of this. This means that if they are paying their employees low wages. They are not making enough as a company to pay their employees a good amount. Primark was using transnationals, which means they have their suppliers in low-cost countries and ultimately they were creating sweatshops. Companies do this to cut cost and the manufacturing process but cutting cost is not always mean it is the right thing to do. Transnational companies also pollute the environment because the stuff that Primark creates is so cheap, the people that consume their products believe that they can be thrown away with ease because they did not pay much for them. This creates an issue because the stuff that Primark puts out it’s gonna be seen as a pollutant because of the price tag. Primark also does not put a lot of care into the people that they employ in low cost countries. They do not show that they care about the health and safety of the people that work for them in these foreign countries. It is unethical of primark as a company to disregard the safety, and the health of the people that they employ, even though they are in a foreign country. Primark also profits from human rights abuses when we take a look at them closely, Primark pay minimum wages that were required by law to their workers in foreign countries. All of these things show how Primark is trying to remain a low cost company, but ultimately it is not in the benefit of the people they employ, only their consumers. There are a lot of ways that Primark keeps their costs at a minimum; they do things like use cheap packaging to transport their goods. Primer also does not use a lot of their profit on advertising and promotion. This has helped the company save millions of dollars as opposed to other companies who spend money on advertisement . This does not work very well in the United States, because we are a country where advertising is very big, such as on social media and also television. Primark also keeps their cost very low by not having an online store. Primark only sells their products in a retail store, this helps to cut costs because they are not paying for anything to be shit, or paying for maintenance of an online site. Ultimately, I would say that Primark is very good at keeping their costs at a minimum, but they are still creating conflicts within their company to do so. In order to be more appropriate in implementing their low-cost strategy, Primark would have to be more courteous to their employees in foreign countries, as well as create a way to cut down on their waste. if Primark did these things, they would easily be one of the best companies at implementing a low-cost strategy.
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